Required information Problem 12-6A (Algo) Use ratios to analyze risk and profitability (LO12-3, 12-4) [The following information applies to the questions displayed below.] Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Net sales Cost of goods sold Expenses: 2025 $3,475,000 2024 $3,001,000 2,473,000 1,943,000 Gross profit 1,002,000 1,058,000 Operating expenses 948,000 851,000 Depreciation expense 23,000 23,500 Loss on sale of land 0 7,300 Interest expense 14,500 11,500 Income tax expense 7,300 44,500 Total expenses Net income 992,800 937,800 9,200 120,200 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less Accumulated depreciation $197,500 $179,000 $137,000 71,500 74,000 53,000 121,500 98,000 128,000 13,300 11,300 5,160 98,000 98,000 0 293,000 203,000 233,000 293,000 263,000 203,000 (81,500) (58,500) (35,000) Total assets $1,006,300 $867,800 $724,160 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $254,400 $59,000 $96,060 Interest payable 6,900 4,600 2,300 Income tax payable 11,300 11,500 13,300 Long-term liabilities: Notes payable Stockholders' equity: Common stock 330,000 278,000 218,000 293,000 293,000 293,000 Retained earnings 110,700 221,700 101,500 Total liabilities and stockholders' equity $1,006,300 $867,800 $724,160 Problem 12-6A (Algo) Part 1 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 times times times times % %